Gov’t asks policies makers to approve giant projects

The Government has asked policy makers to consider a number of projects with total investment capital of more than US$66 billion.

The projects include the North-South Highway, the Long Thanh International Airport and the North-South high-speed railway.

The North-South Highway, running from Ha Noi to HCM City in the east, is designed to be 1,373km long with 4-6 lanes. It’s divided into 20 small projects.

According to Vietnamnet, the project’s investment is estimated at VND222.8 trillion ($9.97 billion), of which, VND136.28 trillion is expectedly mobilised from the private sector, while the remainder, using for site clearance, consulting and the preventive fund, will come from the State budget.

In the 2016-20 period, the project expects to use VND70 trillion from the Government bonds fund as the State’s capital contribution.

The Long Thanh International Airport, which has been discussed for a long time and already proposed by the Government, plans to receive 100 million passengers per year with estimated capital of $16.3 billion.

Of the sum, some $5.9 billion will be invested in the first phase, which includes a runway, a terminal with a yearly capacity of 25 million passengers and 1.2 million tonnes of goods.

The Government has also asked the National Assembly to approve an electricity infrastructure project with estimated investment capital of some VND858.66 trillion ($38.4 billion) from 2016 to 2020. Of the sum, 75 per cent will be invested in developing power resources and 25 per cent for the power network.

Of the project, the Government hopes to receive some VND100 trillion from foreign investment capital, VND200 trillion from Official Development Assistance capital, VND4 trillion from the State budget and VND554.6 trillion from the project’s investors and commercial loans.

As for the North-South high-speed railway project, the Government will focus on making a pre-feasibility study report in the 2016-20 period. It’s expected to be built in the 2020-30 period and will become operational by 2050.

Japan and South Korea are interesting in supporting several railway sections, such as Ha Noi-Vinh and Sai Gon-Nha Trang.

Source: VIR